TaxTMI 
TaxTMI 
2023 (7) TMI 1424
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....rcumstances of the case, the Ld. CIT (A) was justified in giving relief to the assessee on the ground of addition made on interest received on FDs of Rs. 24,54,60,772/- by relying on the decision of Hon'ble High Court of Karnataka in the case of CIT vs of M/s Karnataka State Agricultural Produce Processing and Export Corporation Limited for the A.Y 2008-09, which is not accepted by the Department and further appeal is pending as SLP before the Hon'ble Supreme Court. iii. Whether on the facts and circumstances of the case, the Ld. CIT (A) ought to have appreciated that the assessee is receiving interest on FDs which are made out of grants received from GOK and it does not become the grants itself Therefore, the interest on such FDs have rightly been taxed as income. iv. Whether on the facts and circumstances of the case, the Ld. CIT (A) was justified in giving a finding that the expenditure incurred on solar and other renewable devices and other items are business expenditure when these items of expenditure are incurred out of grant in aid from GOK, hence not an allowable expenditure. v. Whether on the facts and circumstances of the case the Ld. CIT (A) ought t....
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....nal in assessee's own case for Assessment year 2014-15 (supra). 8. We have heard the rival submission and perused the material on record. It is admitted fact that on identical issue, the Tribunal in assessee's own case for Assessment Year 2014-15 (supra) had deleted the addition of the interest income earned on the Fixed Deposit. Respectfully following the Co-ordinate Bench's order of the Tribunal in assessee's own case (supra), we dismiss grounds ii and iii raised by the Revenue. 9. Grounds iv and v (Disallowance of Rs. 16,81,954/- claimed as business expenses) The assessee had claimed expenses of Rs. 16,81,954/- towards solar demo projects and solar & other renewable devices. The AO had disallowed these expenses on the ground that as per the head of expenses debited, such expenses were claimed out of earmarked schemes and there cannot be any expenses towards which no income is declared. 10. Aggrieved, the assessee filed appeal before the FAA. The CIT (A), following Tribunal's order in assessee's own case for Assessment Year 2014-15, deleted the addition made amounting to Rs. 16,81,954/-. 11. Aggrieved by the order of the CIT (A), the Revenue has raised this i....
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.... allowed." 16. Aggrieved by the order of the CIT (A), the Revenue has raised this issue before the Tribunal. The learned DR relied on the order of the AO. 17. The learned AR reiterated the submissions made before the Income Tax authorities and relied on the findings of the CIT (A). 18. We have heard the rival submissions and perused the material on record. It is an admitted fact that the assessee is into the core activity of propagating renewable energy programmes since March, 1996, and is a nodal agency of Government of Karnataka. In propagation of renewable energy, the assessee had incurred expenditure for publishing advertisement in newspaper for popularization of renewable energy. The CIT (A), after going through the Board's approval for incurring the expenditure and also the ledger account, bills, etc., had allowed the claim of the expenditure as revenue in nature. The CIT (A) has also found the inauguration function of 600MW capacity at Pavagada Solar Park is an expenditure incurred which is in the revenue field. The above finding of the CIT (A) is factual in nature which was not controverted by the Revenue. Accordingly, we affirm the order of the CIT (A) on this issue. ....
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....ed. 22. The grounds iv and v relate to the issue of disallowance of expenditure of Rs. 23,52,062/-. For our reasoning mentioned in paragraph 13 (supra) relating to appeal No. 389/Bang/2023 for Assessment Year 2018-19, grounds iv and v in this appeal are rejected. 23. In the result, Revenue's appeal in ITA No. 396/Bang/2023 is dismissed. ITA No. 397/Bang/2023 (Assessment Year 2017-18) 24. The grounds raised read as follows: i. The Order of the Ld. CIT (A) is opposed to the law and facts of the case. ii. Whether on the facts and circumstances of the case, the Ld. CIT (A) was justified in giving relief to the assessee on the ground of addition made on interest received on FDs of Rs. 2,76,73,508/- by relying on the decision of Hon'ble High Court of Karnataka in the case of CIT vs of M/s Karnataka State Agricultural Produce Processing and Export Corporation Limited for the A.Y 2008-09, which is not accepted by the Department and further appeal is pending as SLP before the Hon'ble Supreme Court. iii. Whether on the facts and circumstances of the case, the Ld. CIT (A) ought to have appreciated that the assessee is receiving interest on FDs whi....